AirAsia – from obscurity to international prominence WRITTEN BY RACHNA KUMARI‚ ERN LI KOH‚ ONAISEE SYED‚ & EDITED BY SEOW KIAN TAN Background In December 2001‚ 5 years after its founder DRB-Hicom failed to establish profitability as a full-service regional airline‚ AirAsia was acquired by an eager maverick Tony Fernandes who had just left his executive position in Warner Music. This proved to be the turning point for the Malaysian airline industry. With the help of Conor McCarthy‚ the
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BACKGROUND AirAsia is Malaysia’s second national airline was incorporated in 1993 as a full-service regional airline under DRB-Hicom. They started their operations on 1996. After starting their operations for several years‚ AirAsia failed to attract enough passengers to establish its own niche market due to the demise of Tan Sri Yahaya Ahmad and financial crisis. Hence‚ AirAsia was heavily indebted. In 2001‚ Tony Fernandes’s company‚Tune Air Sdn Bhd bought this airline from DRB-Hicom with estimation
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The Treat of New Entrants The unparallel success of AirAsia had stimulated many LCC to enter the market in its region‚ some of which are large full-service airlines’ subsidiary companies. Knowing that the new-comers would copy its low cost strategy‚ AirAsia introduced a series of unique services. For example‚ it was the first airline in Malaysia to allow online check-in. What’s more‚ it offered more choice for those who wanted to pay more for convenience‚ such as the Xpress boarding service and
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OUMM2103 1.0 INTRODUCTION TO AIR ASIA AirAsia 1 : The AirAsia Logo AirAsia was established in 1993 by DRB-Hicom‚ a Government-owned conglomerate. It started operations in 1996. Tune Air Sdn Bhd‚ Tony Fernandes’s company purchased this heavily indebted airline business from DRB-Hicom in 2001. AirAsia managed to become profitable and world renowned low-cost airline through visionary leadership and innovative business approach. Low Cost Carrier Terminal (LCCT) at Kuala Lumpur International is AirAsia’s
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evaluate the financial performance of AirAsia Bhd. over its recent two years operation. * A brief description of the AirAsia Bhd.’s history‚ the nature of products/services in operation and the objectives. Figure 1.0 Air Asia Logo. AirAsia Berhad (MYX: 5099) is a Malaysian low-cost airline headquartered in Kuala Lumpur. AirAsia Berhad is Asia’s largest‚ and the world’s best‚ low-fare‚ no-frills airline and a pioneer of low-cost travel in Asia. AirAsia group operates scheduled domestic and
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marketplace (Chaffey et al‚ 2009). 1. Customer Airasia provides to its customers the basic flight carrier service and carry the customer ‘s purpose of traveling between different destinations‚ but at a lowest fare among other airlines.(AirAsia Annual Report‚ 2010) The customers of Airasia are mostly from low and middle class people in society. The customers choose the company not only for the purpose of traveling but also for cheaper price. AirAsia airline is well known as a low cost leader in Asia
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1. How did AirAsia’s short-haul business build its competitive advantage? AirAsia introduced themself as the first LCC in SE Asia region‚ by providing no-frills‚ casual short-haul service without serving meal‚ mileage point‚ or lounge etc. Which attracts newcomer customers who sensitive in price. AirAsia’s competitive advantages are comprised of both Cost Leadership and Differentiation with clear market positioning and brand image. Start from Acquisition from Malaysian government‚ Tony Fernandes
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(MAHB) made a statement to the press that blamed AirAsia for wishing to further delay its opening due to security and safety issues. MAHB later made another press statement saying that they have complied with all the requests of AirAsia in regards to building
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Air Asia’s local presence in few countries such as Indonesia (Indonesia AirAsia) and Thailand (Thai AirAsia) has successfully “elevated” the brand to become a regional brand beyond just Malaysia. The links with Manchester United (one of the world’s most famous football teams) and AT&T Williams Formula One team have further boosted their image to a greater extend beyond just the this region 1. Operation effectiveness and outstanding efficiency One of the Air Asia strategies to solve the current
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__________________ Date Lecturer’s Name DIPLOMA : DIA / DIBA / DIM(N) / DHRM / DIHM / DIGD / DIMD AirAsia Berhad is Malaysia and Asia’s first low cost carrier has made its name synonymous with low fare air travel in the region. Now a household name throughout Asia‚ Airasia offers lower fares by eliminating most traditional passenger services in order to make air travel affordable and accessible for everyone. Airasia provides a totally different type of service in line with the nation’s aspirations to benefit
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